ABC Viaticals, et al.

On November 17, 2006, the SEC obtained a temporary
restraining order, asset freeze and other relief against C. Keith LaMonda and
his brother Jesse, and ABC Viaticals, Inc. According to the complaint, the
defendants fraudulently raised at least $100 million from over 4,100 investors
worldwide by offering fractional interests in life insurance policies,
guaranteeing returns from 27% to 150%.

Among other things, the SEC alleged that the defendants
falsely claimed that an independent escrow agent controlled investor funds and
that funds to pay insurance premiums for the duration of the investment were
segregated at the time policies were purchased. During the course of the
scheme, the LaMondas fraudulently transferred at least $6.5 million of investor
funds to entities they controlled. The LaMondas are currently on trial for
mail and wire fraud and income tax evasion in federal district court in Florida.

The Court also appointed Michael J. Quilling as Receiver.
For the latest information about the Receivership, you can visit the Receiver’s website.